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in Open Economy Macroeconomics by (25.6k points)
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Distinguish between appreciation and depreciation. Identify what happens to the exchange rate of rupees in 2015 compared to 2014.

Year Rupee dollar exchange rate
2014 50.
2015 60.

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Appreciation refers to the increase the exchange rate of a currency. Depreciation refers to the decrease in the rate of exchange of currency. Both appreciation depreciation of exchange rate occurs due to the changes in the supply and demand of currencies. Compared to 2014 there is a depreciation of currency exchange rate in 2015.

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